Marketing management assignment strategy analysis on: Radisson Blu Hotel & Resort
1. Executive Summary:
This report discusses the service marketing strategy for Radisson Blu Hotel & Resort. This report also highlights the patterns & determinants of demand for the existing services offered. It provides a clear understanding of the service delivery strategy along with identification of potential sources of service failure.
The recommendations listed in this report would help Radisson Blu Hotel & Resort to sustain in the external environment as well as to monitor the service quality. In this report various issues have been identified such as, potential failures which would affect the functioning of the hotel. Hence, implementation of the Blue Print & the recommendations listed in this report would help the hotel in effective & efficient delivery of services.
Continuous improvements in the service & suitable service quality monitoring systems should be used.
2. Overview of the Radisson Blu hotel & resort
Radisson Blu, previously known as Radisson SAS, was famous outside the United States including those in Africa, Asia and Europe. But after some time, the withdrawal of SAS took place from the partnership, and the new brand Radisson Blu is being introduced across the world.
Radisson Blu Resorts & hotels have marked its presence in more than 200 countries in the Middle East Africa and Europe, and planning to incorporate 51 more hotels in the years to come. Radisson Blu can be differentiated from its competitors in various ways & is known for its first class service such as ‘100% guest satisfaction’ & ‘Yes I Can spirit of service’(Hill, Arthur et al, 2002).
Radisson Blu is a division of Rezidor hotel group, which is one of the quickest growing resorts all over the globe. It comprises of several hotels ranging from 350-400 (approx.) operating in more than 62 countries, & comprising of 87000 rooms. Radisson Blu hotels are situated in city centers, leisure resorts, airports and world capitals.
Radisson Blu wants to be a market leader by mixing its different and stylish method to hotel hardware with its Yes I Can strength of hospitality on the software side.
2.1 Services offered by Radisson Blu Hotel & Resorts:
The current services provided by Radisson Blu Hotels & Resorts are almost the same as compared to its competitors, but, the way they serve their customers is entirely different. ‘Yes I Can’ policy is a feature that helped Radisson Hotel to be on the top most lists & be a market leader in their field.
‘Yes I Can’ portrays a positive attitude when they deal with every guest. The main theme of Radisson is to provide 100% satisfaction to their guests. The employees at Radisson Blu Hotel & Resorts give their guests commitment that if they are not satisfied with the services offered, the customers are not required to pay a single penny.
Radisson Blu hotel and resorts, room styles are famous for more than 20 years; they give a choice to the guests to select a room of their choice. There are about 20 different room designs. The guests at this hotel have the liberty to choose the design according to their taste, preference, living style as well as their budget.
Since Radisson Blu hotel & resorts have been ranked amongst the top five star category hotels, its target market is majorly the high class as well as the rich people. The target market of Radisson also comprises of big business houses that visit & book their banquet halls for seminars, meetings & conferences.
3. Determinants of demand:
There are various determinants of demand that helps any industry or sector to attract consumers towards themselves.
One of the major determinants of demand for hospitality sector would be the Price of the services offered by a Hotel or a Resort. The demand for Radisson Blu Hotel & resort would change if the prices of the services offered by the hotel increases. Though, it has been discussed above that the target market for Radisson are the high end consumers but, we cannot forget if the prices increases the demand for a particular product/service decreases (Haeckel et al, 2003).
The other factor that would lead to a shift in the number of consumers arriving at the hotel is the Substitution effect. This means the other five star hotels & resorts would offer the same services at a lower rate in order to attract more number of guests at their door step.
The Income of the consumer (guest) also has an effect on the demand. Since, the services offered by a five star hotel & resort is a luxury therefore, as the income of the consumer increases he/she tends to visit places which marks his status. The target population of the Radisson Hotel & Resorts is the big business houses, high end consumers, etc who are ready to spend huge amounts (Marquis, 2006).
The taste & preference would also lead to a change in the demand for a particular industry/ sector. The services provided by Radisson Blu hotel should be such that the guests arriving at their hotel should develop a favorable taste towards itself & guests are forced to come to that place time & again.
4. Blueprint of the existing service delivery system:
Blueprint refers to a tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view.
Radisson Hotels is a well known brand known for its hospitality and services.
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